With excitement for the FIFA World Cup growing, we discuss some of the things venues, pubs, businesses and event organisers should be thinking about to combat the potentially detrimental impact it could have, whether England performs well or not, through Revenue Protection Insurance.
This is the first time in the history of the competition that the World Cup has been held in winter due to the temperatures Qatar sees in the summer months and has, naturally, raised eyebrows from critics who argue it’s perhaps not the most suitable location for a football tournament. Nevertheless, the chatter and excitement surrounding this long-awaited event is starting to build. With this, we want to take the opportunity to discuss some of the negative impacts events like the World Cup can have on businesses.
Why consider Revenue Protection Insurance?
If you’re an events organiser, or involved with the provision of an event, it would naturally seem prudent not to host it on the same day or at the same time as a major football tournament. However, data collected by the University of Liverpool (Buraimo, Coster & Forrest, 2020) actually shows the real-life impact it can have if you do (in particular, in the horse racing world); they found that ‘When a race-day competes with an England football match in one of the summer tournaments, the reduction in expected attendance in flat (nearly 20%) and all-weather (about 35%) racing is very adverse.’
So, what if you’ve already arranged your event and changing it now is out of the question but England have been doing pretty well and now have a game scheduled for the same day? Perhaps it’s just tough luck and you will simply have to rely on attendees picking your event over sitting at home or in the pub watching the football, or, perhaps, you insure against it. And just like that, this is where Revenue Protection Insurance arranged by McClarrons Sport comes in, handling the losses that occur for businesses from conditional events, such as England playing on a particular date in the FIFA World Cup.
Racing and other sporting events are not the only ones who might suffer – with so many watching the games, whether glued to the sofa at home or at their local with friends, many restaurants, cinemas and other outlets are likely to be impacted.
On the flip of this of course, if England don’t make it through the tournament as far as expected, pubs equally could miss out from the crowds gathering to watch matches. Ahead of the 2014 World Cup, Marketing Week reported that 21% of viewers had said they would stop watching the World Cup if their team was knocked out, with a few more (29%) saying that they would watch fewer matches; common sense would also suggest this. Therefore, pubs too could end up with their profits taking an unexpected dip at a time where they were expected to fly. Again, in comes Revenue Protection Insurance which can be provided in such scenarios, to cover businesses for the potential loss of revenue due to England performing well, or not, helping them to forecast and rest assured that, whatever the outcome of the England team, they will not be out of pocket.
To talk to us about how the World Cup could impact your business or event and see how you can protect your finances, contact our team at info@mcclarronssport.com.
At McClarrons Sport, we can help if you are concerned about maintaining revenue throughout this year’s World Cup because of the uncertainty surrounding how England (or another country) might perform, so give us a call on 01653 697055.
Find out more about how you can benefit from the services of McClarrons Sport, here.
Sources:
Buraimo, B., Coster, N. & Forrest, D. (2020) Spectator Demand for the Sport of Kings. Available at: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.liverpool.ac.uk/media/livacuk/schoolofmanagement/research/economics/Spectator,Demand,for,the,Sport,of,Kings.pdf (Accessed 9 August 2022).
Handley, L. (2014). What consumers are planning for the World Cup and how brands can reach them. Available at: https://www.marketingweek.com/what-consumers-are-planning-for-the-world-cup-and-how-brands-can-reach-them/ (Accessed 9 August 2022).
